Restrictions on Trade in Elephant Ivory

(name redacted) Legislative Attorney (name redacted) Legislative Attorney September 22, 2015 Congressional Research Service 7-... www.crs.gov R43700

Summary For decades, illegal trade in elephant ivory has threatened the viability of wild populations of the Asian elephant (Elephas maximus) and the African elephant (Loxodonta africana). To reduce the United States contribution to the demand for illegal elephant ivory, President Obama announced in February 2014 that his Administration would strengthen enforcement of U.S. laws governing the trade as part of his National Strategy for Combating Wildlife Trafficking. Shortly thereafter, the Department of the Interior s (DOI s) Fish and Wildlife Service (FWS or Service) took administrative actions designed to restrict trade in elephant ivory further while allowing some trade that the agency does not believe would undermine elephant conservation efforts. At the federal level, two statutes, the Endangered Species Act (ESA) and the African Elephant Conservation Act (AECA), and an international treaty, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), potentially restrict the trade, possession, and use of elephant ivory by persons subject to U.S. jurisdiction. In addition to the statutes that regulate trade in ivory, FWS has promulgated or issued rules, orders, and policies that generally dictate what persons subject to U.S. jurisdiction can do with elephant ivory. In July 2015, FWS proposed certain revisions to its ESA Section 4(d) rule on African elephants that would further restrict trade in African elephant ivory. This report briefly discusses the federal statutes and the treaty that govern international and domestic trade in elephant ivory by persons subject to U.S. jurisdiction. It then provides an overview of the President s strategic plan to combat wildlife trafficking, as well as related administrative actions by FWS. It examines the restrictions on trade in Asian and African elephant ivory contained in federal laws, as well as FWS regulations and policies. It also explains potential exceptions to these restrictions, including exceptions for antiques, certain musical instruments, and ivory that is part of a household move. The report concludes with a brief overview of legislation introduced in the 114 th Congress and FWS s proposed revisions to its special rule addressing African elephant ivory trade. Congressional Research Service

Contents Introduction... 1 Convention on International Trade in Endangered Species of Wild Fauna and Flora... 1 Endangered Species Act... 3 General Prohibitions... 3 Implementation of CITES and Other Trade Provisions... 4 Exception for Antiques... 5 Penalties... 6 African Elephant Conservation Act... 6 Recent Executive Branch Actions... 8 Director s Order No. 210... 8 CITES Final Rule... 9 Restrictions on Trade... 9 General Requirements... 10 Asian Elephant Ivory... 10 African Elephant Ivory... 11 Import Restrictions... 12 Export Restrictions... 14 Domestic Trade... 15 Proposed FWS Regulations and Pending Legislation in the 114 th Congress... 15 FWS Proposed Revisions to the African Elephant ESA Section 4(d) Rule... 15 De Minimis Exception for Certain Manufactured Items... 16 Additional Import Restrictions... 17 Additional Export Restrictions... 17 Restrictions on Foreign Commerce... 17 Additional Restrictions on Domestic Trade... 18 Antiques... 18 Legislation in the 114 th Congress... 19 African Elephant and Legal Ivory Possession Act of 2015... 19 Provision in the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2016... 20 Contacts Author Contact Information... 20 Congressional Research Service

Introduction For decades, illegal trade in elephant ivory has threatened the viability of wild populations of the Asian elephant (Elephas maximus) and the African elephant (Loxodonta africana). 1 Illegal trade in elephant ivory has doubled since 2007, with poachers killing about 35,000 elephants in 2012, according to the U.S. Department of the Interior (DOI). 2 To reduce the United States contribution to the demand for illegal elephant ivory, President Obama announced in February 2014 that his Administration would strengthen enforcement of U.S. laws governing the trade as part of his National Strategy for Combating Wildlife Trafficking. 3 Shortly thereafter, DOI s Fish and Wildlife Service (FWS or Service) took administrative actions designed to restrict further trade in elephant ivory while allowing some trade that the agency does not believe would undermine elephant conservation efforts. 4 These actions included the issuance of Director s Order No. 210 (Director s Order). 5 In July 2015, FWS proposed certain revisions to its ESA Section 4(d) rule on African elephants that would further restrict trade in African elephant ivory. 6 This report briefly discusses the federal statutes and the treaty that govern international and domestic trade in elephant ivory by persons subject to U.S. jurisdiction. It then provides an overview of the President s strategic plan to combat wildlife trafficking, as well as related administrative actions by FWS. It examines the restrictions on trade in Asian and African elephant ivory contained in federal laws, as well as FWS regulations and policies. 7 The report concludes with a brief overview of legislation in the 114 th Congress and FWS s proposed revisions to its special rule addressing African elephant ivory trade. Convention on International Trade in Endangered Species of Wild Fauna and Flora The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES or Convention) is an agreement among 180 countries (Parties) that establishes a permitting and certificate system to protect wildlife and plant species from harm caused by illegal or 1 U.S. Fish and Wildlife Service (FWS), Fact Sheet, U.S. Efforts to Control Illegal Elephant Ivory Trade and Internal Markets (2012), available at http://www.fws.gov/international/pdf/factsheet-us-efforts-to-control-illegal-elephantivory-trade.pdf. 2 DOI, News Release (February 11, 2014), available at http://www.doi.gov/news/pressreleases/interior-announces-banon-commercial-trade-of-ivory-as-part-of-overall-effort-to-combat-poaching-wildlife-trafficking.cfm. 3 Executive Office of the President, National Strategy for Combating Wildlife Trafficking 2-3 (February 11, 2014), available at http://www.whitehouse.gov/sites/default/files/docs/nationalstrategywildlifetrafficking.pdf. 4 FWS, What can I do with my African elephant ivory? (updated May 15, 2014), http://www.fws.gov/international/ travel-and-trade/ivory-ban-questions-and-answers.html. 5 FWS, Director s Order No. 210 2(b) (February 25, 2014), as amended (May 15, 2014) [hereinafter Order 210], available at http://www.fws.gov/policy/do210.pdf. Order 210 was originally issued on February 25, 2014. To reduce confusion, this report will refer only to the amended version of the Director s Order, as that is the version that is currently operative. FWS provided a redline copy of the Director s Order to show how the amendments changed the original order; that document is available at http://www.fws.gov/policy/a1do210.pdf. 6 FWS, Revision of the Section 4(d) Rule for the African Elephant (Loxodonta africana), 80 Fed. Reg. 45154 (July 29, 2015). 7 This report does not discuss trade in live elephants; the transit or transshipment of ivory through places subject to U.S. jurisdiction; or trade in specimens from animals bred in captivity. It also does not examine whether actions by FWS related to trade in ivory are consistent with the United States international obligations under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) or other international agreements. Congressional Research Service 1

unsustainable international trade in the species or their parts and products. 8 Parties to CITES, including the United States, have undertaken certain international obligations with respect to trade in specimens of species listed in the CITES appendices. 9 CITES strictly regulates trade in specimens of Appendix I species because they are threatened with extinction. 10 For these species, CITES generally requires an export permit, showing that the animals, plants, or parts thereof were legally obtained and that export will not be detrimental to the species survival; and an import permit, which includes a statement that the specimen is not being used primarily for commercial purposes and that import is not detrimental to the species survival. 11 Appendix II species receive a medium level of protection because they could potentially become endangered in the future in the absence of trade restrictions. 12 Export of specimens of Appendix II species generally requires a permit issued by the exporting country s Management Authority after a finding that the specimens were legally acquired and that export will not be detrimental to the species survival. 13 Finally, a Party to CITES may designate unilaterally a native species as an Appendix III species if the Party requires the assistance of other CITES parties to control international trade in that species. 14 Export of an Appendix III species from a Party that has included the species in Appendix III requires an export permit. 15 CITES, as implemented by FWS, also bans commercial use of a specimen after import in some circumstances. 16 CITES contains a few exceptions to its permitting requirements that are particularly relevant to trade in elephant ivory. For example, when a Party s Management Authority (e.g., FWS) is satisfied that a specimen was removed from the wild prior to its listing in a CITES appendix, the core permitting provisions of CITES do not apply to that specimen, but the authority must issue a pre-convention certificate to accompany the export or re-export of the specimen. 17 CITES also contains exceptions for the import and export of certain personal or household effects; 18 noncommercial loan, donation, or exchange of certain specimens between scientists or registered scientific institutions; 19 import or export of pre-convention specimens in traveling exhibitions; 20 8 27 U.S.T. 108; CITES, Preamble; 50 C.F.R. 23.1(b). CITES was signed by the United States on March 3, 1973; ratified by the United States later that year; and entered into force on July 1, 1975. The text of the Convention is available at http://www.cites.org/eng/disc/text.php. 9 CITES, Art. II. For the purposes of U.S. domestic law, CITES would not appear to be a self-executing treaty. See CITES, Art. XIV ( The provisions of the present Convention shall in no way affect the provisions of any domestic measures... ); 50 C.F.R. 23.1(c) ( We, the U.S. Fish and Wildlife Service... implement CITES through the Endangered Species Act. ); United States v. One Etched Ivory Tusk of African Elephant, 871 F. Supp. 2d 128, 133 (2012) ( No provision of CITES indicates that the treaty is self-executing. ). Thus, CITES obligations become part of U.S. law only when implemented by Congress or another appropriate domestic lawmaking or regulatory body acting within the scope of its authority. As described below, Congress implemented CITES in part by amending the ESA to ban persons subject to U.S. jurisdiction from engaging in the trade of specimens in violation of CITES or possessing specimens previously traded contrary to CITES. 16 U.S.C. 1538(c). 10 CITES, Art. II(1). 11 CITES, Art. III. 12 CITES, Art. II(2). 13 CITES, Art. IV. However, import of these specimens does not require a separate permit under CITES. See id. 14 CITES, Art. II(3). 15 CITES, Art. V. Import after export (but not re-export) may require presentation of an export permit or, if the specimen originated in a country that did not list the species in Appendix III, a certificate of origin. Id. 16 See 50 C.F.R. 23.55. 17 CITES, Art. VII(2); see also 50 C.F.R. 23.45; Resolution Conf. 13.6 (Rev. CoP16), Implementation of Article VII, Paragraph 2, Concerning Pre-Convention Specimens. 18 CITES, Art. VII(3). 19 CITES, Art. VII(6); 50 C.F.R. 23.48. Congressional Research Service 2

and musical instruments containing pre-convention specimens that cross borders for personal use or performance. 21 Notably, CITES allows parties to the Convention to adopt stricter domestic measures governing trade in specimens of species listed in the appendices. 22 Thus, a person exporting or re-exporting ivory from or importing ivory into the United States should consult with the Management Authority of the foreign importing or exporting country to determine whether stricter measures (e.g., additional permitting requirements) apply. 23 Endangered Species Act Congress enacted the Endangered Species Act (ESA) 24 in 1973 (and later amended it) in an effort, among other things, to conserve endangered or threatened species of wildlife and implement U.S. international obligations under CITES and other treaties. 25 The act authorizes DOI and the Department of Commerce to promulgate regulations listing certain species as endangered 26 or threatened 27 after following certain procedures. 28 FWS performs the listing function for DOI under the ESA. General Prohibitions After FWS has listed a species (e.g., the Asian elephant) as endangered, the ESA prohibits any person 29 subject to U.S. jurisdiction from engaging in certain actions with respect to that species unless the person can prove that an exception applies. 30 These prohibited actions include the (...continued) 20 CITES, Art. VII(7); 50 C.F.R. 23.49. 21 See CITES, Resolution Conf. 16.8, Frequent Cross-border Non-commercial Movements of Musical Instruments. 22 CITES, Art. XIV(1). For example, a CITES party may choose not to recognize the personal and household effects exemption. Resolution Conf. 13.7 (Rev. CoP16), Control of Trade in Personal and Household Effects; 50 C.F.R. 23.15. 23 50 C.F.R. 23.20(b); FWS, Fact Sheet, CITES Permits and Certificates (December 2012), http://www.fws.gov/ international/pdf/factsheet-cites-permits-and-certificates-2013.pdf. CITES also contains provisions addressing trade with countries not party to the Convention or trade with states that have made a reservation with respect to a particular species. CITES, Art. X; 50 C.F.R. 23.21(d), 23.22(e), 23.25. Malawi has maintained a reservation with respect to the African elephant since 1990. CITES, Reservations Entered by Parties, http://www.cites.org/eng/app/reserve.php. 24 16 U.S.C. 1531-1544. 25 16 U.S.C. 1531(a)-(b). 26 Under the ESA, an endangered species is one which is in danger of extinction throughout all or a significant portion of its range. 16 U.S.C. 1532(6). 27 The ESA defines threatened species as any species which is likely to become an endangered species within the foreseeable future throughout all or a significant portion of its range. 16 U.S.C. 1532(20). 28 16 U.S.C. 1533. One circumstance under which FWS may list a species is when the species is being overused for commercial purposes. Id. 29 The ESA defines person as an individual, corporation, partnership, trust, association, or any other private entity; or any officer, employee, agent, department, or instrumentality of the Federal Government, of any State, municipality, or political subdivision of a State, or of any foreign government; any State, municipality, or political subdivision of a State; or any other entity subject to the jurisdiction of the United States. 16 U.S.C. 1532(13). 30 16 U.S.C. 1538(a)(1), 1539(g). For example, a person might demonstrate that FWS granted the person an ESA permit. 16 U.S.C. 1539(a)(1)(A). Generally, FWS may grant a permit for endangered species for scientific purposes or to enhance the propagation or survival of the affected species. Id. Approval by FWS of a permit may be conditioned on the holder adhering to certain conditions. Id. 1539(a). There is also a possible exception for bona fide antiques. 16 U.S.C. 1539(h). These exceptions are discussed further below. Congressional Research Service 3

import 31 into, or export from, the United States 32 of the endangered species; the delivery, receipt, or transport in interstate or foreign commerce of the species in the course of a commercial activity ; 33 the sale or offer for sale in interstate or foreign commerce of the species; or the violation of a regulation promulgated under the ESA pertaining to an endangered or threatened species. 34 With respect to threatened species, such as the African elephant, which are considered to be at less risk of extinction than endangered species, the ESA authorizes DOI to promulgate regulations to protect that species. 35 Such regulations may prohibit any act that is prohibited for endangered species under 16 U.S.C. 1538(a)(1). 36 The Service has promulgated a regulation entitled Special rules mammals that contains, in part, some restrictions with respect to trade in African elephant ivory. 37 As discussed below, FWS has proposed certain revisions to this rule that would further restrict trade in African elephant ivory. 38 Implementation of CITES and Other Trade Provisions The ESA also serves as the United States implementing legislation for CITES. 39 The act designates DOI as the Management and Scientific authorities under CITES and directs the agency to take all actions necessary and appropriate to perform the functions of these authorities under the Convention. 40 The act also prohibits persons subject to U.S. jurisdiction from engaging in the 31 Under the ESA, import means to land on, bring into, or introduce into, or attempt to land on, bring into, or introduce into, any place subject to the jurisdiction of the United States, whether or not such landing, bringing, or introduction constitutes an importation within the meaning of the customs laws of the United States. 16 U.S.C. 1532(10). 32 The ESA generally defines United States as any of the several States, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, the Virgin Islands, Guam, and the Trust Territory of the Pacific Islands. 16 U.S.C. 1532(17), (21). 33 The ESA defines commercial activity as all activities of industry and trade, including, but not limited to, the buying or selling of commodities and activities conducted for the purpose of facilitating such buying and selling: Provided, however, That it does not include exhibition of commodities by museums or similar cultural or historical organizations. 16 U.S.C. 1532(2). FWS regulations define industry or trade in this context as the actual or intended transfer of wildlife or plants from one person to another person in the pursuit of gain or profit. 50 C.F.R. 17.3. 34 16 U.S.C. 1538(a); 50 C.F.R. 17.21(a)-(b), (e)-(f). The prohibitions on the import and export of endangered species, as well as the violation of rules promulgated under the ESA pertaining to species listed as endangered or threatened, do not apply when wildlife was held in captivity or in a controlled environment on (1) December 28, 1973 (the date of the enactment of the ESA); or (2) the date of publication in the Federal Register of a final rule listing a species as endangered or threatened when the holding or subsequent holding or use of the species was not done in the course of a commercial activity. 16 U.S.C. 1538(b). If the import, export, or rule violation occurred more than 180 days after the passage of the ESA or the listing of the species as endangered or threatened, there is a rebuttable presumption that the wildlife involved in such act is not entitled to the exemption. Id. 35 16 U.S.C. 1533(d). 36 Id. 37 The current version of the rule is located at 50 C.F.R. 17.40(e). It is commonly referred to as a special rule. 38 FWS, Revision of the Section 4(d) Rule for the African Elephant (Loxodonta africana), 80 Fed. Reg. 45154 (July 29, 2015). For a discussion of the proposed rule, see FWS s Proposed Revisions to the African Elephant ESA Section 4(d) Rule below. 39 16 U.S.C. 1537a. 40 16 U.S.C. 1537a(a). Offices within FWS perform the functions of these authorities. 16 U.S.C. 1537a(a). In addition, the ESA authorizes DOI, the Secretary of the Treasury, and the Secretary of the Department of Homeland Security to promulgate such regulations as may be appropriate to enforce the ESA. 16 U.S.C. 1540(f). Congressional Research Service 4

trade 41 of specimens 42 in violation of CITES or possessing specimens previously traded contrary to CITES. 43 Persons in the business of importing wildlife into, or exporting it from, the United States must also obtain authorization from FWS to engage in these activities, including with respect to raw or worked African elephant ivory, and must follow certain recordkeeping, inspection, and reporting requirements. 44 Persons subject to U.S. jurisdiction may import or export wildlife only at certain designated U.S. ports unless DOI grants an exemption. 45 Exception for Antiques Under 16 U.S.C. 1539(h), prohibitions applying to endangered species (16 U.S.C. 1538(a)); threatened species (16 U.S.C. 1533(d)); and trade undertaken in violation of CITES (16 U.S.C. 1538(c)) do not apply when the article is an antique under the ESA. 46 In order to qualify as an antique, an item must: A) Not be less than 100 years old; B) Be composed in whole or in part of any endangered species or threatened species listed under the ESA (16 U.S.C. 1533); C) Have not been repaired or modified with any part of any such species on or after December 28, 1973 (the date of enactment of the ESA); and D) Enter at a port designated for the import of ESA antiques. 47 As noted below, the FWS Director s Order announced FWS s plan to enforce these requirements strictly. 48 However, FWS notes that items imported into the United States prior to the establishment of a designated ESA antique port (established on September 22, 1982) and items that were created inside the United States, and were therefore never imported, only have to satisfy the first three of the above listed criteria. 49 41 The ESA incorporates the definition of trade contained in Article I of CITES, which is export, re-export, import and introduction from the sea. CITES, Art. I(c). Re-export refers to export of any specimen that has previously been imported. CITES, Art. I(d). 42 The ESA incorporates the definition of specimen from Article I of CITES, which, in relevant part, refers to any animal, whether dead or alive, as well as any readily recognizable part or derivative of such animal if its species is included in CITES appendices I or II or a part or derivative of the species is specified in Appendix III. CITES, Art. I(b). 43 16 U.S.C. 1538(c); 50 C.F.R. 23.13(a), (c). 44 16 U.S.C. 1538(d)-(e). FWS regulations state that to engage in business means to import or export wildlife for commercial purposes. 50 C.F.R. 14.91. The regulations define commercial as related to the offering for sale or resale, purchase, trade, barter, or the actual or intended transfer in the pursuit of gain or profit, of any item of wildlife and includes the use of any wildlife article as an exhibit for the purpose of soliciting sales, without regard to quantity or weight. There is a presumption that eight or more similar unused items are for commercial use. The Service or the importer/exporter/owner may rebut this presumption based upon the particular facts and circumstances of each case. 50 C.F.R. 14.4. 45 16 U.S.C. 1538(f). 46 16 U.S.C. 1539(h). 47 16 U.S.C. 1539(h)(1). Ports of entry for antiques made of ESA-listed species are Boston, Massachusetts; New York, New York; Baltimore, Maryland; Philadelphia, Pennsylvania; Miami, Florida; San Juan, Puerto Rico; New Orleans, Louisiana; Houston, Texas; Los Angeles, California; San Francisco, California; Anchorage, Alaska; Honolulu, Hawaii; and Chicago, Illinois. 19 C.F.R. 12.26(g)(2). 48 Order 210 2(b). 49 Order 210, App. A 1. Congressional Research Service 5

A person claiming the exception has the burden of proving that the exemption... is applicable, has been granted, and was valid and in force at the time of the alleged violation. 50 This generally requires the person to document the species and age of the specimen to show that it qualifies for the exception. 51 According to FWS, at least for an import, qualified appraisal, documents that provide detailed provenance, and/or scientific testing is required, and notarized statements or affidavits by the importer or a CITES pre-convention certificate alone are not necessarily adequate proof that the article meets the ESA exception. 52 Penalties Violations of the ESA, including violations of certain provisions in ESA permits, certificates, or regulations, may result in civil and/or criminal penalties. 53 The ESA provides that certain criminal violations of the act are misdemeanors, punishable by a fine and/or one year in jail. 54 Forfeiture of the illegal item is also authorized. 55 In addition, the Lacey Act 56 generally prohibits the import, export, transport, sale, receipt, acquisition, or purchase of wildlife that has been taken, possessed, transported, or sold in violation of any law, treaty, or regulation of the United States or in violation of any Indian tribal law ; or the import, export, transport, sale, receipt, acquisition, or purchase in interstate or foreign commerce of wildlife taken, possessed, transported, or sold in violation of any law or regulation of any State or in violation of any foreign law. 57 A person may also potentially violate the Lacey Act and 18 U.S.C. 1001 when falsely claiming, for example, that a specimen is an ESA antique. 58 African Elephant Conservation Act Congress passed the African Elephant Conservation Act (AECA) 59 in 1988 in an effort to prevent further decline in populations of African elephants by restricting certain international trade in African elephant ivory. 60 AECA required the Secretary of the Interior to place a moratorium on the import into the United States 61 of raw 62 and worked 63 ivory from ivory producing countries 50 16 U.S.C. 1539(g). 51 16 U.S.C. 1539(g); Order 210, Appendix A 2-3. 52 Order 210, Appendix A 2. 53 16 U.S.C. 1540. 54 16 U.S.C. 1540(b)(1). 55 16 U.S.C. 1540(e)(4). 56 16 U.S.C. 3371-3378. 57 16 U.S.C. 3372(a)(1)-(2); FWS, Lacey Act, http://www.fws.gov/international/laws-treaties-agreements/usconservation-laws/lacey-act.html. 58 16 U.S.C. 3372(d); 18 U.S.C. 1001. 59 16 U.S.C. 4201-4246. 60 16 U.S.C. 4201-4202. For more on the conservation aspects of AECA and the Asian Elephant Conservation Act, see CRS Report RS21157, International Species Conservation Funds, by (name redacted) and (nam e redacted). 61 AECA defines United States as the fifty States, the District of Columbia, Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and the territories and possessions of the United States. 16 U.S.C. 4244(12). 62 AECA defines raw ivory as any African elephant tusk, and any piece thereof, the surface of which, polished or unpolished, is unaltered or minimally carved. 16 U.S.C. 4244(10). 63 AECA defines worked ivory as any African elephant tusk, and any piece thereof, which is not raw ivory. 16 (continued...) Congressional Research Service 6

whose African elephant conservation programs did not satisfy certain criteria. 64 However, AECA prevents the Secretary from banning individuals from importing into the United States sporthunted elephant trophies that they or their principals legally took from ivory producing countries that have submitted an ivory quota to the CITES Secretariat in accordance with the CITES Ivory Control System. 65 In 1989, FWS found that no ivory producing and intermediary nations were able to comply with the AECA importation requirements. 66 Consequently, AECA and the moratorium promulgated thereunder prohibit the import 67 of raw African elephant ivory unless it is a qualifying sport- (...continued) U.S.C. 4244(13). 64 16 U.S.C. 4222(a), 4244(6). The act directed the Secretary to evaluate the African elephant conservation program of each African country containing any part of the range of an African elephant population and determine whether the program met certain criteria. 16 U.S.C. 4221, 4244(7). These criteria are: (A) The country is a party to CITES and adheres to the CITES Ivory Control System. (B) The country s elephant conservation program is based on the best available information, and the country is making expeditious progress in compiling information on the elephant habitat condition and carrying capacity, total population and population trends, and the annual reproduction and mortality of the elephant populations within the country. (C) The taking of elephants in the country is effectively controlled and monitored. (D) The country s ivory quota is determined on the basis of information referred to in [subparagraph (B)] and reflects the amount of ivory which is confiscated or consumed domestically by the country. (E) The country has not authorized or allowed the export of amounts of raw ivory which exceed its ivory quota under the CITES Ivory Control System. 16 U.S.C. 4221(b)(1). Subject to certain conditions, ivory from intermediary countries that imported the goods from countries under an AECA moratorium must also be prohibited. 16 U.S.C. 4222(b). AECA requires the Secretary to impose a moratorium on import of ivory from intermediary countries upon finding that a country: (1) is not a party to CITES; (2) does not adhere to the CITES Ivory Control System; (3) imports raw ivory from a country that is not an ivory producing country; (4) imports raw or worked ivory from a country that is not a party to CITES; (5) imports raw or worked ivory that originates in an ivory producing country in violation of the laws of that ivory producing country; (6) substantially increases its imports of raw or worked ivory from a country that is subject to a moratorium under this chapter during the first three months of that moratorium; or (7) imports raw or worked ivory from a country that is subject to a moratorium under this chapter after the first three months of that moratorium, unless the ivory is imported by vessel during the first six months of that moratorium and is accompanied by shipping documents which show that it was exported before the establishment of the moratorium. 16 U.S.C. 4222(b). 65 16 U.S.C. 4222(e), 4244(8) (defining ivory quota ). AECA does not define sport-hunted elephant trophies, but at least one court has held that trophies with even minimal carving may be worked ivory that does not qualify as an exempt trophy under U.S. law. United States v. One Etched Ivory Tusk of African Elephant, 871 F. Supp. 2d 128, 136-39 (2012). 66 FWS, Moratorium on Importation of Raw and Worked Ivory from All Ivory Producing and Intermediary Nations, 54 Fed. Reg. 24758 (June 9, 1989). 67 AECA adopts the ESA s definition of import, which is to land on, bring into, or introduce into, or attempt to land on, bring into, or introduce into, any place subject to the jurisdiction of the United States, whether or not such landing, bringing, or introduction constitutes an importation within the meaning of the customs laws of the United States. See 16 U.S.C. 1532(10), 4244(5). Congressional Research Service 7

hunted trophy. 68 AECA forbids the export of raw African elephant ivory from the United States. 69 AECA and the moratorium promulgated thereunder ban the import of worked African elephant ivory, and at least one court has held that, under current regulations, this ban applies even to the import of worked ivory that is part of a sport-hunted trophy. 70 AECA does not address the export of worked ivory from the United States. 71 Violations of AECA may subject a person to civil and/or criminal penalties. 72 Recent Executive Branch Actions On February 11, 2014, President Obama released his National Strategy for Combating Wildlife Trafficking. 73 As part of this initiative, the President announced a plan to strengthen enforcement through the use [of] administrative tools to address the dramatic increase in illegal elephant ivory... trade. 74 Later that same day, DOI issued a press release announcing the agency s intent to take regulatory action in order to implement the President s strategy 75 and, shortly thereafter, issued the Director s Order and promulgated the final rule revising the CITES use-after-import provisions. Director s Order No. 210 In promulgating the Director s Order, 76 FWS signaled its intent to enforce strictly the moratorium on imports of raw and worked African elephant ivory established under AECA 77 and the antique exception to the ESA 78 and discussed how the agency intended to exercise prosecutorial 68 See 16 U.S.C. 4222-4223; FWS, Moratorium on Importation of Raw and Worked Ivory from All Ivory Producing and Intermediary Nations, 54 Fed. Reg. 24758, 24761 (June 9, 1989). FWS found that some trophies contribute substantial revenues to the wildlife management programs of ivory-producing nations. 54 Fed. Reg. 24758, 24761. As discussed below, FWS has stated that as a matter of law enforcement discretion, it intends to allow certain noncommercial imports of raw and worked African elephant ivory. Order 210 2(b). 69 16 U.S.C. 4223(2). 70 16 U.S.C. 4223; FWS, Moratorium on Importation of Raw and Worked Ivory from All Ivory Producing and Intermediary Nations, 54 Fed. Reg. 24758, 24761 (June 9, 1989); United States v. One Etched Ivory Tusk of African Elephant, 871 F. Supp. 2d 128, 136-39 (2012). As discussed below, FWS has stated that as a matter of law enforcement discretion, it intends to allow certain noncommercial imports of raw and worked African elephant ivory. Order 210 2(b). 71 See 16 U.S.C. 4223. 72 16 U.S.C. 4224. 73 Executive Office of the President, National Strategy for Combating Wildlife Trafficking (February 11, 2014). A 2013 executive order provides that wildlife trafficking means the poaching of protected species and the illegal trade in wildlife and their derivative parts and products. Exec. Order 13648, 78 Fed. Reg. 40621 (July 1, 2013). 74 Executive Office of the President, National Strategy for Combating Wildlife Trafficking 2 (February 11, 2014). 75 DOI, News Release (February 11, 2014). The news release stated that the agency intended to, among other things: 1) prohibit commercial import of African elephant ivory; 2) prohibit commercial export of elephant ivory; 3) significantly restrict domestic resale of elephant ivory; 4) clarify the definition of antique ; 5) restore ESA protection for African elephants; and 6) support limited sport-hunting of African elephants. 76 Order 210. Order 210 was originally issued on February 25, 2014. To reduce confusion, this memorandum will refer only to the amended version of the Director s Order No. 210, as that is the version that is currently operative. FWS provided a redline copy of the Director s Order to show how the amendments changed the original order; that document is available at http://www.fws.gov/policy/a1do210.pdf. 77 16 U.S.C. 4201-4246; FWS, Moratorium on Importation of Raw and Worked Ivory from All Ivory Producing and Intermediary Nations, 54 Fed. Reg. 24758, 24761 (June 9, 1989). 78 16 U.S.C. 1539(h). Congressional Research Service 8

discretion with respect to these laws. For AECA, the Director s Order states that as a matter of law enforcement discretion FWS intends to allow importation of certain parts and products, which it identifies as African elephant ivory imported for law enforcement purposes or certain scientific purposes; and, under certain conditions, worked ivory imported as part of a household move, a musical instrument, or a traveling exhibition. 79 For the antique exception, which excludes qualified items from regulation under 16 U.S.C. 1533(d) (protective regulations for threatened species); 1538(a) (general ESA prohibitions); and 1538(c) (CITES 80 prohibitions), FWS clarified that a person claiming an ESA exemption bears the burden of proving that the exemption is applicable under the ESA. 81 CITES Final Rule On May 27, 2014, DOI promulgated a final rule that revised certain regulations relating to useafter-import restrictions under CITES those regulations affect whether an item, after being imported, can be sold in interstate or intrastate commerce within the United States. 82 The CITES revised regulations, which went into effect on June 26, 2014, 83 clarified that the allowed use after import into the United States is determined by the status of the specimen under CITES and the ESA at the time it is imported. 84 The rule also added language requiring a party to be able to clearly demonstrate that the specimen was imported prior to the CITES listing, with no restrictions on its use after import if the party wanted to use the item for commercial purposes in the United States. 85 In addition to these CITES use-after-import restrictions, as discussed below, FWS has proposed certain revisions to the special rule for African elephants under the ESA that would further restrict commercial interstate trade of African elephant ivory. 86 Restrictions on Trade This section summarizes restrictions on, and other requirements for, trade in Asian and African elephant ivory contained in ESA, AECA, CITES, and FWS regulations and policies. This section focuses on restrictions currently in place revisions to the African elephant special rule under the ESA are discussed in greater detail later in this report. 87 79 Order 210 2(b). 80 As noted above, FWS is charged with the implementation of CITES pursuant to the ESA. 81 Order 210 2(a); It is worth noting that the text of the ESA directly provides that a person claiming an exception has the burden of proving that the exemption... is applicable, has been granted, and was valid and in force at the time of the alleged violation. 16 U.S.C. 1539(g). 82 FWS, Revision of Regulations Implementing the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES); Update Following the Fifteenth Meeting of the Conference of the Parties to CITES, Final Rule, 79 Fed. Reg. 30400 (May 27, 2014). 83 Generally, a rule cannot become legally binding until 30 days after it has been published in the Federal Register. 5 U.S.C. 553. 84 79 Fed. Reg. 30410. 85 Id. at 30427. 86 For further discussion, see FWS s Proposed Revisions to the African Elephant ESA Section 4(d) Rule. 87 See FWS s Proposed Revisions to the African Elephant ESA Section 4(d) Rule below. Congressional Research Service 9

General Requirements Depending on the type of trade and the species involved, general permitting and licensing requirements may apply. General requirements and procedures governing the application for, and FWS issuance of, CITES and ESA permits as well as associated rules pertaining to fees and recordkeeping are located at 50 C.F.R. Part 13. In addition, general rules governing the import and export of wildlife are located at 50 C.F.R. Part 14. This part includes rules regarding ports designated for the importation and exportation of certain wildlife specimens (and exceptions); inspection and clearance of wildlife; import and export declaration requirements; marking requirements and exceptions; and import/export licenses and inspection fees for commercial trade. 88 Notably, CITES allows parties to the Convention to adopt stricter domestic measures governing trade in specimens of CITES-listed species. 89 Thus, a person exporting or re-exporting ivory from or importing ivory into the United States should consult with the Management Authority of the foreign importing or exporting country to determine whether stricter measures (e.g., additional permitting requirements) apply. 90 Parties seeking to trade in elephant ivory (particularly, intrastate trade) may also have to comply with certain state laws, provided that federal law does not preempt them. 91 Asian Elephant Ivory Because FWS has listed the Asian elephant as an endangered species under the ESA, and CITES parties have designated it as an Appendix I species under the Convention, international and domestic trade in its ivory is heavily restricted. Unless an exception applies, the ESA prohibits persons subject to U.S. jurisdiction from, among other things, importing or exporting the ivory; delivering, receiving, carrying, transporting, or shipping the ivory in interstate or foreign commerce in the course of a commercial activity; and selling or offering the ivory for sale in interstate or foreign commerce. 92 In addition, the ESA prohibits international trade in specimens in violation of CITES (e.g., commercial trade in Asian elephant ivory removed from the wild on or after it became an Appendix I species on July 1, 1975), and possession of specimens previously traded in violation of CITES. 93 Possible exceptions to these prohibitions under the ESA include (1) that the ivory was traded pursuant to an ESA permit for certain noncommercial purposes 94 and the terms and conditions of the permit were satisfied; 95 (2) that the item is a bona fide antique, 96 which, if traded 88 50 C.F.R. Part 14. 89 CITES, Art. XIV(1). For example, a CITES party may choose not to recognize the personal effects exemption. Resolution Conf. 13.7 (Rev. CoP16), Control of Trade in Personal and Household Effects. 90 FWS, Fact Sheet, CITES Permits and Certificates (December 2012), http://www.fws.gov/international/pdf/factsheetcites-permits-and-certificates-2013.pdf. 91 See 16 U.S.C. 1533(f) (stating that, in certain circumstances, federal law preempts conflicting state laws governing the import or export of or interstate or foreign commerce in ESA-listed species). 92 16 U.S.C. 1538(a)(A), (E)-(F); 50 C.F.R. 17.21(a)-(b), (e)-(f). 93 16 U.S.C. 1538(c). 94 Such purposes relevant to this discussion include scientific purposes and the enhancement of propagation or survival of the species. 16 U.S.C. 1539(a), (c)-(d), (g). Because the Asian elephant is an Appendix I species, import or export of its ivory for primarily commercial purposes is generally prohibited under CITES. CITES, Art. III. 95 16 U.S.C. 1539(a); 50 C.F.R. 17.22. International trade of the specimen may also have to meet additional CITES requirements incorporated into FWS regulations. See, e.g., 50 C.F.R. 23.20(d)(11). Congressional Research Service 10

internationally, is accompanied by a pre-convention certificate; 97 or (3) that the ivory is a pre- ESA specimen that was held in a controlled environment or from a specimen held in captivity before FWS listed the Asian elephant as endangered under the ESA on June 14, 1976, 98 and has not been bought or sold since that time 99 that is being imported or exported for noncommercial purposes and complies with any relevant CITES requirements. 100 In addition, specimens of the Asian elephant, a CITES Appendix I species, that have been imported into the United States may not be used or transferred for commercial purposes in intrastate commerce unless it is a pre-convention item (removed from the wild prior to July 1, 1975) imported with proper documentation. 101 Even if it is such an item, regulations or permit conditions may restrict use to noncommercial purposes. 102 African Elephant Ivory Trade in African elephant ivory is restricted, but not as heavily as with trade in Asian elephant ivory. FWS listed the African elephant as threatened under the ESA on June 11, 1978, 103 and FWS promulgated a special rule for it at that time. 104 The African elephant has been a CITES-listed species since February 26, 1976, and an Appendix I species since January 18, 1990. 105 However, certain populations of African elephants in Botswana, Namibia, South Africa, and Zimbabwe were later moved to Appendix II, subject to annotations governing trade in their specimens. 106 (...continued) 96 For more on the requirements of the antique exception, see Exception for Antiques above. It appears that such antiques may be traded for commercial or noncommercial purposes. 97 16 U.S.C. 1539(g)-(h). FWS does not interpret the 1978 ESA amendments that added the antique exception as repealing treaty obligations under CITES related to pre-convention certificates. Order 210, Appendix A n.i. A person claiming the antique exception for an import or export must document the species and age of the specimen to show that it qualifies for the exception. 16 U.S.C. 1539(g); Order 210, Appendix A 2-3. According to FWS, at least for imports, qualified appraisal, documents that provide detailed provenance, and/or scientific testing is required, and notarized statements or affidavits by the importer or a CITES pre-convention certificate alone are not necessarily adequate proof that the article meets the ESA exception. Order 210, Appendix A 2. 98 Endangered Status for 159 Taxa of Animals, 41 Fed. Reg. 24062, 24066 (June 14, 1976). 99 It appears that the ivory may have been acquired in a noncommercial transfer (e.g., a gift) at any time so long as it was held in captivity or a controlled environment for noncommercial purposes prior to the date of its listing as an endangered species under the ESA. The Asian elephant has been listed in CITES Appendix I since the Convention entered into force on July 1, 1975. CITES, Asian Elephant, http://www.cites.org/eng/gallery/species/mammal/ asianelephant.html. Thus, it appears that, in addition to ESA requirements, the specimen would have to be accompanied by a pre-convention certificate if removed from the wild prior to that date. 100 16 U.S.C. 1538(b); 50 C.F.R. 17.4. If the import or export occurred more than 180 days after the passage of the ESA or the listing of the endangered or threatened species, there is a rebuttable presumption that the wildlife involved in such act is not entitled to the exemption contained in this subsection. 16 U.S.C. 1538(b). 101 50 C.F.R. 23.55. 102 Id. State laws could also potentially restrict use of a specimen in intrastate commerce. 103 FWS, Listing of the African Elephant as a Threatened Species, 43 Fed. Reg. 20499, 20504 (May 12, 1978). 104 The rule, as amended, is located at 50 C.F.R. 17.40(e). 105 See United Nations Environmental Programme and CITES Secretariat, Species+ website, Loxodonta africana, at http://speciesplus.net/#/taxon_concepts/4521/legal?taxonomy=cites_eu. 106 See id. Congressional Research Service 11

Import Restrictions AECA, among other restrictions on ivory trade, authorized FWS to impose a moratorium on the import of African elephant ivory from countries that do not meet certain conservation standards. 107 In 1989, FWS issued a moratorium that prohibits the import of African elephant ivory from ivory producing and intermediary nations. 108 Under the Director s Order, FWS has announced that it plans to enforce strictly the prohibition on imports. FWS has stated that the Service no longer allows any commercial importation of African elephant ivory. This prohibition, which was originally established via the 1989 [AECA] moratorium, applies even to items that qualify as antiques. 109 Under the current African elephant 4(d) rule, import of raw or worked ivory that is not a sport-hunted trophy is limited to (1) antiques more than 100 years old; and (2) ivory imported following export from the United States and registration of the ivory with FWS. 110 FWS s Authority to Ban Commercial Import of Antique African Elephant Ivory Although it appears that, as a matter of policy, FWS has previously allowed import of antique African elephant ivory for commercial purposes prior to the Director s Order, 111 the Director s Order declares that it supersedes all previous policies on the June 9, 1989, [AECA] import memorandum. 112 Therefore, because the newly announced policy does not permit the commercial importation of antiques, 113 and this policy statement supersedes previously announced policies, it appears the importation of antiques for commercial purposes will no longer be permitted. It is worth noting, however, that the current regulation of African elephant ivory under the ESA, as published in the Code of Federal Regulations, allows for the import of antiques but does not specify that such imports must be for noncommercial purposes. 114 It is arguable that this rule would need to be revised, pursuant to notice and comment rulemaking procedures, in order for the ban on antique African elephant imports to be enforceable. 115 Therefore, although the FWS fact sheet on permissible activities currently indicates that commercial import of antique ivory is prohibited, 116 FWS may need to conduct rulemaking to bring its regulations into 107 16 U.S.C. 4221, 4222. 108 FWS, Moratorium on Importation of Raw and Worked Ivory From All Ivory Producing and Intermediary Nations, 54 Fed. Reg. 24758, 24761 (June 9, 1989). 109 FWS, What can I do with my African elephant ivory? (updated May 15, 2014). For a more detailed description of the antique exception and its requirements, see Exception for Antiques above. 110 50 C.F.R. 17.40(e). 111 [I]mport of worked ivory into the United States continues to be prohibited under the terms of [AECA], as interpreted by the ESA 4(d) special rule, unless they meet any of the following exceptions: (1) Bona fide antiques more than 100 years old... 62 Fed. Reg. 44627, 44633 (August 22, 1997); The final revised special rule does contain limited exceptions that allow the import of ivory that is... a bona fide antique... 57 Fed. Reg. 35473, 35484 (August 10, 1992). Antique CITES-listed specimens must generally be accompanied by a pre-convention certificate issued by the exporting or re-exporting country. 50 C.F.R. 23.45. 112 Order 210 1(c). 113 See id. at 2(b). 114 50 C.F.R. 17.40(e)(3)(ii)(1) ( Raw or worked ivory (other than sport-hunted trophies) may be imported only if: (1) It is a bona fide antique of greater than 100 years of age on the day of import... ). 115 See 5 U.S.C. 553. Agencies are obligated to follow their own regulations. United States ex rel. Accardi v. Shaughnessy, 347 U.S. 260, 265-68 (1954), superseded by statute on other grounds; A.D. Transport Express, Inc. v. United States, 290 F.3d 761, 766 (6 th Cir. 2002) ( When an agency promulgates regulations, it is... bound by those regulations. ). 116 FWS, What can I do with my African elephant ivory? (updated May 15, 2014). Congressional Research Service 12